Break even sales = Fixed costs/Contribution Margin Ratio
Contribution Margin Ratio = Contribution Margin/Sales
= 13,500/45,000
= 30%
Margin of Safety in Dollars = Sales – Break even sales
= 45,000 – 8640/30%
= $16,200
Margin of Safety % = Margin of safety in Dollars/Sales
= 16,200/45,000
= 36%
Required information [The following information applies to the questions displayed below.] Income Statement Sales (1,000 units)...
Required information (The following information applies to the questions displayed below.) Income Statement Sales (1,898 units) Variable expenses Contribution margin Fixed expenses Net operating income 45, ose 31.500 13,500 8.640 4,860 6. If the selling price increases by $2 per unit and the sales volume decreases by 100 units, what would be the net operating income? The new sales volume is within the relevant range. Net operating income Required information (The following information applies to the questions displayed below.) Income...
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Required information (The following information applies to the questions displayed below.] Oslo Company prepared the following contribution format income statement based on a sales volume of 1,000 units (the relevant range of production is 500 units to 1,500 units): Sales Variable expenses Contribution margin Fixed expenses Net operating income $100,000 65,000 35,000 30, 100 $ 4,900 11. What is the margin of safety in dollars? What is the margin of safety percentage? Margin of safety in dollars Margin of safety...
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